WISC-TV channel 3 out of Madison, Wisconsin is reporting that up to 52 businesses in Reedsburg, Wisconsin are facing foreclosure—even though many of these businesses have never missed a mortgage payment.
The decision comes after BMO Harris, a subsidiary of the Canadian lender Bank of Montreal, took over the assets of The Reedsburg Bank. A bank spokesman declined to answer why the lender was removing from its books businesses that hadn't missed payments.
While one man’s flag company is safe because his financing is at a different bank his non-profit church could be foreclosed on because it does not make enough money. Since when should a non-profit enterprise like a church have to make a profit? I know things have changed over the last few years because of the Great Recession; however, I did not know one of the changes was that non-profit entities had to turn a profit. But:
As many as 52 owners face losing their property, sources in Reedsburg told WISC-TV. One confirmed he was laying off some employees, while another had already moved to a new facility.
Less operating income coupled with falling property values compelled the bank to act, said one business owner, who asked to remain anonymous.
The widespread foreclosure decisions will be a burden on Reedsburg's economy, said Dave Estes, the city's mayor.
First off, how in the hell can it be legal for a bank to foreclose on a loan if the payments have been made on time? Second, less operating income and falling property values “Compelled the bank to act.” Seriously? We are in the middle of a recession—of course a business will have less operating income and falling property value. If the business is still making its mortgage payments on time I do not see how operating income and property value going down can compel a bank to foreclose on a business. All I can say at this point is, “Greedy fucking bastards!”
As a side note, as much as I want to blame Governor Walker for this I can’t…but I will still say:
RECALL WALKER, RECALL KLEEFISCH!